DR Horton Losses Narrow in FY2009
DR Horton (DHI) posted a net loss of $231.9m, or $0.79 per share, for its fiscal Q409 that ended on Sept. 30, compared to a net loss of $799.9m or $2.53 per share, during the same quarter of fiscal year 2008. Fiscal fourth quarter -- or FQ409 -- results were impacted by a $192.6m pre-tax charge for inventory impairments and write-offs of deposits and pre-acquisition costs related to land option contracts the Fort Worth-based builder is abandoning. The 2009 fiscal year (FY2009) ended with a net loss of $545.3m, or $1.72 per share. The builder experienced a pre-tax charge to cost of sales of $407.7m. In FY2008, the company reported a net loss of $2.6bn, or $8.34 per share. Homebuilding revenue for Q409 was $1bn and the company delivered 4,810 homes, compared to $1.8bn in homebuilding revenue and 6,961 one year ago. DR Horton delivered more than 16,703 homes in its FY2009, and homebuilding revenue for the year totaled $3.6bn, down from $6.5bn and 26,396 delivered homes for FY2008. “Our net sales orders in the September quarter reflected a 26% increase compared to the prior year quarter. However, market conditions in the homebuilding industry are still challenging, characterized by rising foreclosures, high inventory levels of available homes, increasing unemployment, tight credit for homebuyers and weak consumer confidence,” board chairman Donald Horton said. “We have continued to adjust our business to the current homebuilding environment by reducing our owned lot position and completed specs, controlling costs and strengthening our balance sheet.” Horton added: “We have generated positive cash flow from operations in each of the past thirteen quarters, and our unrestricted homebuilding cash balance was $1.9bn at September 30, 2009. Our net homebuilding debt to total capitalization was 36.3% at the end of the fiscal year, and we will continue to focus on maintaining our strong liquidity position and balance sheet.” DR Horton had a sales backlog of homes under contract of 5,628 homes totaling $1.1bn on Sept. 30, compared to 5,297 homes worth $1.2bn one year ago. Net orders at the end of the quarter totaled 5,008, up from 3,977 one year ago. The cancellation rate was 27% in the quarter. The firm repurchased $72m of outstanding notes for $72.4m during the quarter. For the year, the company repurchased a total of $380.3m in outstanding notes for $368m. The company will pay a cash dividend $0.0375 per share. Write to Austin Kilgore.